FINANCIAL INSTRUMENTS AND DERIVATIVES (Tables)

9 Months Ended

Sep. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Notional Amounts of Outstanding Derivative Positions

The following summarizes the notional amounts of cash flow hedges, hedges of net investments, fair value hedges, and derivative instruments not designated as hedges for accounting purposes by derivative instrument type at September 30, 2021 and the notional amounts expected to mature during the next 12 months.

(in millions)	Aggregate Notional Amount		Aggregate Notional Amount Maturing within 12 Months
Cash Flow Hedges
Foreign exchange forward contracts	$	323	$	246
Total derivative instruments designated as cash flow hedges	$	323	$	246
Hedges of Net Investments
Foreign exchange forward contracts	$	185	$	93
Cross currency basis swaps	309		—
Total derivative instruments designated as hedges of net investments	$	494	$	93
Fair Value Hedges
Interest Rate Swaps	$	250	$	—
Foreign exchange forward contracts	217		134
Total derivative instruments designated as fair value hedges	$	467	$	134
Derivative Instruments not Designated as Hedges
Foreign exchange forward contracts	$	342	$	342
Total derivative instruments not designated as hedges	$	342	$	342

Schedule of Derivative Instruments

The amount of gains and losses recorded in the Company’s Consolidated Balance Sheets and Consolidated Statements of Operations related to all derivative instruments for the three months ended September 30, 2021 and 2020 were as follows:

	Three Months Ended September 30, 2021
(in millions)	Gain (Loss) recognized in AOCI		Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)		Recognized in Income (Expense)
Cash Flow Hedges
Foreign exchange forward contracts	$	6	Cost of products sold	$	(2)	$	—
Interest rate swaps	—		Interest expense, net	(1)		—
Total for cash flow hedging	$	6		$	(3)	$	—
Hedges of Net Investments
Cross currency basis swaps	$	(1)	Interest expense, net	$	—	$	1
Foreign exchange forward contracts	4		Other expense (income), net	—		—
Total for net investment hedging	$	3		$	—	$	1
Fair Value Hedges
Interest rate swaps	$	—	Interest expense, net	$	—	$	1
Foreign exchange forward contracts	—		Other expense (income), net	—		6
Total for fair value hedging	$	—		$	—	$	7

	Three Months Ended September 30, 2020
(in millions)	Gain (Loss) recognized in AOCI		Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)		Recognized in Income (Expense)
Cash Flow Hedges
Foreign exchange forward contracts	$	(6)	Cost of products sold	$	1	$	1
Interest rate swaps	3		Interest expense, net	(2)		—
Total for cash flow hedging	$	(3)		$	(1)	$	1
Hedges of Net Investments
Cross currency basis swaps	$	(17)	Interest expense, net	$	—	$	2
Total for net investment hedging	$	(17)		$	—	$	2

The amount of gains and losses recorded in AOCI in the Consolidated Balance Sheets and Consolidated Statement of Operations related to all derivative instruments for the nine months ended September 30, 2021 and 2020 were as follows:

	Nine Months Ended September 30, 2021
(in millions)	Gain (Loss) recognized in AOCI		Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)		Recognized in Income (Expense)
Cash Flow Hedges
Foreign exchange forward contracts	$	3	Cost of products sold	$	(4)	$	1
Interest rate swaps	—		Interest expense, net	(4)		—
Total for cash flow hedging	$	3		$	(8)	$	1
Hedges of Net Investments
Cross currency basis swaps	$	6	Interest expense, net	$	—	$	5
Foreign exchange forward contracts	7		Other expense (income), net	—		—
Total for net investment hedging	$	13		$	—	$	5
Fair Value Hedges
Interest rate swaps	$	—	Interest expense, net	$	—	$	1
Foreign exchange forward contracts	—		Other expense (income), net	—		18
Total for fair value hedging	$	—		$	—	$	19

	Nine Months Ended September 30, 2020
(in millions)	Gain (Loss) recognized in AOCI		Consolidated Statements of Operations Location	Effective Portion Reclassified from AOCI into Income (Expense)		Recognized in Income (Expense)
Cash Flow Hedges
Foreign exchange forward contracts	$	(2)	Cost of products sold	$	2	$	2
Interest rate swaps	(17)		Interest expense, net	(3)		—
Total for cash flow hedging	$	(19)		$	(1)	$	2
Hedges of Net Investments
Cross currency basis swaps	$	(13)	Interest expense, net	$	—	$	7
Foreign exchange forward contracts	6		Other expense (income), net	—		6
Total for net investment hedging	$	(7)		$	—	$	13

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

The fair value and the location of the Company’s derivatives in the Consolidated Balance Sheets were as follows:

	September 30, 2021
(in millions)	Prepaid Expenses and Other Current Assets		Other Noncurrent Assets		Accrued Liabilities		Other Noncurrent Liabilities
Designated as Hedges:
Foreign exchange forward contracts	$	13	$	11	$	2	$	—
Interest rate swaps	3		—		—		5
Cross currency basis swaps	3		—		—		14
Total	$	19	$	11	$	2	$	19
Not Designated as Hedges:
Foreign exchange forward contracts	$	1	$	—	$	2	$	—
Total	$	1	$	—	$	2	$	—
	December 31, 2020
(in millions)	Prepaid Expenses and Other Current Assets		Other Noncurrent Assets		Accrued Liabilities		Other Noncurrent Liabilities
Designated as Hedges:
Foreign exchange forward contracts	$	5	$	2	$	10	$	3
Cross currency basis swaps	—		—		20		—
Total	$	5	$	2	$	30	$	3
Not Designated as Hedges:
Foreign exchange forward contracts	$	3	$	—	$	2	$	—
Total	$	3	$	—	$	2	$	—

Offsetting Derivative Assets and Liabilities

Offsetting of financial assets and liabilities under netting arrangements at September 30, 2021 were as follows:

							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Assets
Foreign exchange forward contracts	$	25	$	—	$	25	$	(10)	$	—	$	15
Interest rate swaps	3		—		3		(3)		—		—
Cross currency basis swaps	3		—		3		(3)		—		—
Total assets	$	31	$	—	$	31	$	(16)	$	—	$	15
Liabilities
Foreign exchange forward contracts	$	4	$	—	$	4	$	(3)	$	—	$	1
Interest rate swaps	5		—		5		(3)		—		2
Cross currency basis swaps	14		—		14		(10)		—		4
Total liabilities	$	23	$	—	$	23	$	(16)	$	—	$	7

Offsetting of financial assets and liabilities under netting arrangements at December 31, 2020 were as follows:

							Gross Amounts Not Offset in the Consolidated Balance Sheets
(in millions)	Gross Amounts Recognized		Gross Amount Offset in the Consolidated Balance Sheets		Net Amounts Presented in the Consolidated Balance Sheets		Financial Instruments		Cash Collateral Received/Pledged		Net Amount
Assets
Foreign exchange forward contracts	$	9	$	—	$	9	$	(9)	$	—	$	—
Total assets	$	9	$	—	$	9	$	(9)	$	—	$	—
Liabilities
Foreign exchange forward contracts	$	15	$	—	$	15	$	—	$	—	$	15
Interest rate swaps	20		—		20		(7)		—		13
Total liabilities	$	35	$	—	$	35	$	(7)	$	—	$	28